California Bars Coverage of Workers’ Comp Suit, Insurer Says (1)

A workers’ compensation administrator isn’t entitled to indemnity coverage under an excess liability policy for a nearly $35 million verdict in a wrongful termination suit, a Liberty Mutual Holding Co. unit said.

The coverage is precluded by California insurance code Section 533, which bars indemnity coverage for losses caused by willful acts of the insured, Ironshore Indemnity Inc. argued in a complaint filed Tuesday in the US District Court for the Central District of California.

The jury’s finding that Keenan & Associates’ willful conduct caused the underlying plaintiff’s damages means there can be no coverage for a judgment or settlement, ...